Minister of State-Owned Enterprises (SOEs), Erick Thohir, has again proposed the merger of several state-owned companies in the food, logistics, infrastructure and construction clusters.
This proposal was submitted by Erick as a strategic step to support the food self-sufficiency program that is being initiated by the government and to eradicate the debt problem of state-owned construction companies.
“We are proposing that PTPN (Nusantara Plantation company) merge with Perhutani so that we have a land area of 2.2 million hectares to map which ones will support the government’s food self-sufficiency program,” Erick told a hearing with Commission VI of the House of Representatives (DPR) in Jakarta, on Monday, November 4, 2024.
With this merger, the government hopes to expand the land that can be used for various national food needs, including sugar self-sufficiency. Erick said that re-mapping is needed because several sectors of the national food industry are starting to lose out in competition and are constrained by limited land.
Not only in the food sector, Erick also proposed a merger in the construction, infrastructure and logistics clusters. For infrastructure, Erick stated that his party was still waiting for a letter of approval from the Ministry of Public Works (PU) considering a number of joint projects in this sector.
He added that in the near future his ministry also plans to merge seven state-owned construction companies into three clusters. The seven companies are PT Adhi Karya (ADHI), PT Pembangunan Perumahan (PTPP), PT Wijaya Karya (WIKA), PT Hutama Karya, PT Waskita Karya (WSKT), PT Brantas Abipraya, and PT Nindya Karya.
Under the scheme, Adhi Karya will become the holding parent for Brantas and Nindya. Furthermore, PTPP will be merged with Wijaya Karya, while Waskita will merge with Hutama Karya.
Specifically to consolidate state-owned construction enterprises, Erick Thohir said that he will meet with PU Minister Dody Hanggodo on Wednesday, November 6, 2024 to ask for approval regarding the merger.
In the logistics sector, Erick proposed a merger between PT Pelni and PT ASDP Indonesia Ferry to strengthen Indonesia’s maritime sector. Erick hopes that this step will create a special port for imports, in order to protect small and medium enterprises (SMEs) from the impact of excessive imports.
“We will determine the ports for import access. Because currently there are many imports that have an impact on our Micro, Small and Medium Enterprises (MSMEs),” he added.
This consolidation step is considered important by Erick Thohir to increase the efficiency and competitiveness of state-owned companies amidst global competition, while ensuring support for strategic sectors that support the national economy.
